The problems mentioned in the paper were presented as the second half of the November 1939 C.P.A. examination prepared by the Board of Examiners of the American Institute of Accountants. The candidates were required to solve all problems in six hours. The weights were as follows: problem 1, 10 points; problem 2, 25 points; problem 3, 30 points, and problem 4, 33 points. The set of problems which, while far from an ideal C.P.A. examination, is superior to Part I of the same examination, which appeared in the December issue of the journal The Accounting Review. Unlike problem 3 of part 1, the problems of this set are clearly stated and lead to a solution without imposing on the candidate the added burden of reading the mind of the examiner.

The article focuses on various problems, which were prepared by the Board of Examiners of the American Institute of Certified Public Accountants (CPA) and were presented as the second half of the May 1940 CPA examination in accounting practice. The examinee was given six hours to solve problems 1, 2, 3 and either problem 4 or 5. Problems were weighted as follows: problem 1, 10 points; problem 2, 25 points; problem 3, 30 points; problems 4 and 5, 33 points each. In one question, details of two hypothetical companies namely A and B, which are entirely owned and controlled by same interests, are presented. The company A's condensed balanced-sheet for a particular year is presented in the article. In another question, another hypothetical company, namely, S.S. Manufacturing Co. is discussed, which completed construction of its plant for the manufacture of lawn mowers on January 1, 1939 and commenced manufacturing on January 13, 1939. The examinee is required to restate the actual and standard production costs for the thirty-day operating period and show the estimated loss by theft of the 500 lawn mowers.

The problems mentioned in the paper were prepared by the Board of Examiners of the American Institute of Accountants and were presented as the first half of the May 1940 C.P.A. examination in those states using the Institute questions. The candidates were allowed six hours to solve the five problems. A detailed list of problems is mentioned in the paper.